Tesla Faces $1.4 Billion Accounting Discrepancy as Financial Scrutiny Intensifies

The EV giant’s financial practices are under the microscope, with investors questioning debt strategies and CEO Elon Musk’s leadership focus.

A Financial Times report revealed a $1.4 billion gap between Tesla's reported capital expenditures and the increase in asset valuation for the last half of 2024.
Despite holding $37 billion in cash reserves, Tesla raised $6 billion in new debt last year, prompting concerns about its financial strategy.
Experts suggest the discrepancy may point to weak internal controls or aggressive expense classification, drawing comparisons to past financial scandals like Wirecard.
Tesla’s stock valuation has dropped from $1.7 trillion to under $800 billion, reflecting growing investor dissatisfaction with the company’s direction.
CEO Elon Musk’s divided focus between Tesla and his government role has fueled calls for leadership changes as the company plans significant investments in AI and robotics.